Study of REITS (Real Estate Investment Trusts) and its prospect in India: Studied REITS in US, UK, Singapore and Hong Kong; its evolution in India and its pros and cons. Concluded that India is a conducive environment for REITS.
Real estate investment trusts (REITs) - Overviewhardiklad93
its all about the REITs an overview. Also includes detail of REITs in global market as well as in Indian context.
Also includes advantage & disadvantage of REITs.
Study of REITS (Real Estate Investment Trusts) and its prospect in India: Studied REITS in US, UK, Singapore and Hong Kong; its evolution in India and its pros and cons. Concluded that India is a conducive environment for REITS.
Real estate investment trusts (REITs) - Overviewhardiklad93
its all about the REITs an overview. Also includes detail of REITs in global market as well as in Indian context.
Also includes advantage & disadvantage of REITs.
REIT simply implies trading dematerialized real estate. REIT exists in most countries of the world, its a great way of optimizing real estate investment and maximize wealth. REIT was legalized in India in 2013. SEBI is its regulator and the coming times will tell the tale of REIT in India.
While planning for investing in tax savings instruments, you should be focusing on your portfolio asset allocation rather than safety of returns or recent past performance.
Systematic Investment Plan (SIP)-Smarter way to meet your financial goalsRR Finance
SIP is an investment program that allows you to contribute a fixed amount (as low as Rs. 1000/-) in mutual funds at regular intervals. Please visit:- http://rrfinance.com/Mutual%20Fund/Mutual_Fund_Home.aspx
Real estate is perhaps the smartest investment option open to you today. It offers less risk than playing the stock market, and can provide much higher profitability when done right. Of course, you still need to know how to get started
Investment Accounts: Government Stocks and Unit TrustsZibusiso Masuku
This is a short slide on Investment Accounts, mainly covering Government Stocks and Unit Trusts. Prepared by the Freshman students of Actuarial Science (2014/15) at NUST in Bulawayo Zimbabwe!
I have found all primary data and secondary data for this project by my own efforts and the all data are 100% true according to my summer internship experience..Thanks
Need of REIT and its prospective implication in india- phoenix mall case studyAjinkya jagtap
A Real Estate Investment Trust is a company which modelled after mutual fund that owns or finances income-producing real estate. It provides investors regular income streams, long-term capital appreciation and diversification. REITs typically distribute all of their taxable income as dividends to shareholders. On those dividends shareholders pay the income taxes. REITs are strong income vehicles because REITs must pay out at least 90 percent of their taxable income in the form of dividends to shareholders .Office buildings, hotels, shopping malls, apartments, resorts, warehouses, self-storage facilities and mortgages or loans are the income producing real estate assets of REITS.
India has also tried to establish REIT. Mainly due to global slowdown and resultant impact on the property markets in India the earlier attempts to introduce REITs in India did not succeed. The other aspect is mortgage backed securities which is not permitted to invest, resulted real estate market opportunities shrinkage. However, SEBI announced the draft consultation paper on Real Estate Investment Trust (REIT) Regulations on October 10, 2013. Earlier in 2008, SEBI had issued certain draft regulations for introducing REITs. I-REITs (REITs in India) will invest in completed rent generating properties in India (to comprise minimum 90% of net asset value) and mortgage backed securities, would issue securities, which would be listed on stock exchanges and. In earlier phase I-REITs are planned to be available only to high net worth individuals and institutions to develop the market but now there are some relaxations introduced.
REIT simply implies trading dematerialized real estate. REIT exists in most countries of the world, its a great way of optimizing real estate investment and maximize wealth. REIT was legalized in India in 2013. SEBI is its regulator and the coming times will tell the tale of REIT in India.
While planning for investing in tax savings instruments, you should be focusing on your portfolio asset allocation rather than safety of returns or recent past performance.
Systematic Investment Plan (SIP)-Smarter way to meet your financial goalsRR Finance
SIP is an investment program that allows you to contribute a fixed amount (as low as Rs. 1000/-) in mutual funds at regular intervals. Please visit:- http://rrfinance.com/Mutual%20Fund/Mutual_Fund_Home.aspx
Real estate is perhaps the smartest investment option open to you today. It offers less risk than playing the stock market, and can provide much higher profitability when done right. Of course, you still need to know how to get started
Investment Accounts: Government Stocks and Unit TrustsZibusiso Masuku
This is a short slide on Investment Accounts, mainly covering Government Stocks and Unit Trusts. Prepared by the Freshman students of Actuarial Science (2014/15) at NUST in Bulawayo Zimbabwe!
I have found all primary data and secondary data for this project by my own efforts and the all data are 100% true according to my summer internship experience..Thanks
Need of REIT and its prospective implication in india- phoenix mall case studyAjinkya jagtap
A Real Estate Investment Trust is a company which modelled after mutual fund that owns or finances income-producing real estate. It provides investors regular income streams, long-term capital appreciation and diversification. REITs typically distribute all of their taxable income as dividends to shareholders. On those dividends shareholders pay the income taxes. REITs are strong income vehicles because REITs must pay out at least 90 percent of their taxable income in the form of dividends to shareholders .Office buildings, hotels, shopping malls, apartments, resorts, warehouses, self-storage facilities and mortgages or loans are the income producing real estate assets of REITS.
India has also tried to establish REIT. Mainly due to global slowdown and resultant impact on the property markets in India the earlier attempts to introduce REITs in India did not succeed. The other aspect is mortgage backed securities which is not permitted to invest, resulted real estate market opportunities shrinkage. However, SEBI announced the draft consultation paper on Real Estate Investment Trust (REIT) Regulations on October 10, 2013. Earlier in 2008, SEBI had issued certain draft regulations for introducing REITs. I-REITs (REITs in India) will invest in completed rent generating properties in India (to comprise minimum 90% of net asset value) and mortgage backed securities, would issue securities, which would be listed on stock exchanges and. In earlier phase I-REITs are planned to be available only to high net worth individuals and institutions to develop the market but now there are some relaxations introduced.
The Dreamgirl 2012 lingerie catalog features over 200 pages of sexy lingerie styles from this well known lingerie brand.
Find sexier lingerie styles, including bras, panties, thongs, corsets and much more.
All Dreamgirl lingerie styles are available for purchase at www.PamperedPassions.com.
With the new investment vehicle, Real Estate Investment Trusts (REITs) coming into effect, what will be the impact on real estate sector? Does the real estate sector striving for cash influx will able to boost up the cash strapped industry a new route to tap capital with the approval of setting up of Real Estate Investment Trusts(REITs) by SEBI, market regulator.
REIT is an investment pool, which finds alternative means of financing real estate through an initial public offering (IPO), which is then used to buy, develop, manage and sell assets in real estate. This pool of real estate generates income through renting, leasing and selling of property and distributes it directly to the REIT holder on a regular basis.
A major benefit of REITs is that they do not have to pay tax on the income received by them, as 90% of the income is distributed to the shareholders. Smaller real estate investors are offered certain important qualities through the modem REITs, which previously were never accessible and available to them before.
Real Estate Investment Trust (#REIT) provides an unique opportunity to #investors to invest indirectly in income producing #RealEstate. This investment vehicle has the potential to open up #CapitalMarkets to raise sizeable funds by the #Developers & #RealEstateIndustry. Informative presentation.
Commercial Real Estate Investment Trusts (REITs) provide investors with an opportunity to invest in a diversified portfolio of income-generating commercial properties. The pros of investing in commercial REITs include diversification, passive income through regular dividends, professional management, liquidity, and access to large-scale properties. However, investors should also consider the cons, such as market volatility, sensitivity to interest rate changes, lack of control over management decisions, tax considerations, and potential concentration risks. It's important for investors to weigh these factors before making investment decisions in commercial REITs.
Why you should invest in commercial real estate.docxKalyan Group's
Investing in Commercial Real Estate (CRE) assets has become more cost-operative and less time-consuming, thanks to the introduction of publicly-traded real estate investment trusts (REIT)
Learn all you need to about Real Estate Investment Trusts or REITs for short, and how you can take advantage of the opportunity to invest in a Portfolio of Properties, from buy to let, to commercial properties, instead of just one.
The law related to REIT was introduced by the Capital Market Authority of Kenya in June 2013, making REIT as an Investment asset class for potential Real Estate investors to use it as vehicle to tap the dynamic and rapidly expanding Kenyan Property Market.The article gives an over view of these regulations. Kenya is the 3rd African country to have REIT's as an investment asset class.
Zack childress real estate ideologies on reitZack Childress
zack childress Real estate investment trust (REIT) has been in existence for nearly 2 decades which helps in managing and buying rent producing asset like office and retail outlets.
Will REITS be a game-changer for the Indian real-estate industry as it is exp...Aurum Equity Partners LLP
REITS have been the key source of capital for real estate in most developed markets, and increasingly so in the last decade. In India, raising capital has been challenging for real estate companies. SEBI has recently promulgated the REIT Regulations and some changes in tax legislation and some more (hopefully in the ensuing fiscal budget), have been carried out.
However, for an industry to change to a new regime, also requires the industry participants to learn the rules of the new game.
What can the industry learn from other sectors? Join the Aurum CXO Dialogues webinar where industry veterans from Aurum Equity, Black Olive Ventures and Dua Associates share their insights and perspectives on how the industry can leverage the opportunities created by REITS.
500 acres of brilliance await you here at Riverview City which offers modern living, effortless convenience, and a beautiful natural setting. It is a mega township by Magarpatta City in Loni Kalbhor, Pune. Enjoy easy access to work, schools, and fun while experiencing a perfect work-life balance.
Visit - magarpattacity.developerprojects.in
Need MCA leads? No sweat! MCAs are great for small biz funding. Learn how to snag top-notch leads: businesses needing cash, with repayment ability, decision-makers, and accurate contacts. Use content, social ads, lead platforms, partnerships, and capture processes for quality leads.
https://www.leadgeneration.media/blog/b/streamline-your-mca-sales-process-with-pre-qualified-leads
Oeiras Tech City, Developed by RE Capital and REIG, Will Become Lisbon's Futu...Newman George Leech
Oeiras Tech City, a historic development in the Oeiras municipality of Lisbon, is acquired by RE Capital and REIG. It is located on a 93,000-square-meter plot of land and combines co-living, business, and residential areas. It highlights ESG principles and is close to Tagus Park, which improves the urban landscape of Lisbon.
Simpolo Tiles & Bathware
Tile ho,
toh Simpolo.
Since the first steps were taken in 1977, Simpolo Ceramics has carved its niche as a consistently growing organisation with unparalleled innovation and passion rooted in simplicity.
We endure gratification for every experience we offer, created to share something meaningful. It may not resonate with the majority, but that makes us a class apart. If only a handful were to understand the purpose of our existence, we would be proud to have found our believers. Rather, people with whom we can share our beliefs.
VISUALIZER
Design your space in your style with our very own Visualizer. Now, you can choose the tiles of your liking from our wide selection and see how they would look in a space. Select the tile from the multiple options and the visualiser will replace the surfaces in the image with the selected tiles. This way, instead of just your imagination, you can choose the tiles for your place by getting an actual picture of how they would look in a space. So, design your space the way you desire digitally and implement it in real life to get the best results!
You can also share this visualiser with others to help them design their space.
Committed to delighting customers with world-class ceramic products and services. Make Simpolo synonymous with the best quality and set new benchmarks of excellence for all stakeholders. Pursue best business practices with utmost integrity to make Simpolo an exciting organisation to work with, for vendors, channel partners, investors and employees alike.
Gain worldwide recognition in the field of ceramic building products through Research and Innovation and bring an enhanced lifestyle within reach for every household.
Flat available for sale
Location- Tupudana, Ranchi
Savitri enclave
Area- 3BHK
Rate- 4000/sq.ft.
Super Build Up Area-1629 sq.ft.
Build-up area-1253 sq.ft.
Rate- 65lakh16k(approx)
Floor available- Flat available in all floor(G+12)
Balcony- 2
Washroom- 2
Parking - CAR PARKING
Amenities- Joggers track,temple, children's park,gym,banquet hall (5 Lakh)
Possession year (Handover year)- Dec 2025
Outside View from the apartment and flat balcony is very beautiful.
For more information contact AASHIYANA STAR PROPERTIES
7766900371
Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szet...Volition Properties
=== Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szeto) ===
Ever been curious about Real Estate Investing in the US?? At Volition, for the past 14 years, we have been focused on helping investors invest in over $250M of real estate and generate $100M of wealth in the Toronto market, but we are always open to learning more about other business models and learning from other investors.
The US has always been an intriguing market to invest in. But the US is a big place… if you’re interested in investing in the US, you probably have a lot of questions, like:
☑️ Specifically WHERE should you invest?
☑️ What are the best markets to invest in and why?
☑️ How much are property prices there?
☑️ What are the returns like?
☑️ What is cashflow like?
☑️ Compared to investing in Toronto or other cities in Ontario, what are the benefits / tradeoffs?
☑️ What ownership structure should I use?
☑️ What are the tax implications?
☑️ Can I get financing?
☑️ What are tenants like?
Enter Erwin Szeto, a longtime friend of Volition. Since 2005, Erwin Szeto and his team have navigated the challenging landscape of being landlords in Ontario. Now, they are shifting their focus and guiding their clients' investments toward the more landlord-friendly environment of the USA. This decision comes after assisting Canadian clients in transacting over $440,000,000 in income properties. Faced with issues like affordability constraints, tenant-friendly laws, rent control, and rental licensing in Canada, Erwin sees a clear opportunity in the U.S. Here, there is a significant influx of investments leading to the creation of high-paying manufacturing jobs. Erwin and his clients are poised to capitalize on these opportunities where landlord rights are stronger and there is no rent control.
To facilitate this transition, Erwin has partnered with and become a client of SHARE, a one-stop-shop U.S. Asset Manager. Founded by Canadians for Canadians, SHARE enables as passive an ownership experience as possible for landlords in the U.S., while still maintaining direct, 100% ownership.
Erwin is “Making Real Estate Investing Great Again”!!
Website: https://www.infinitywealth.ca/
Facebook: https://www.facebook.com/iwinrealestate and https://www.facebook.com/ErwinSzetoOfficial
Podcast: https://www.truthaboutrealestateinvesting.ca/
Instagram: https://www.instagram.com/iwinrealestate/ and https://www.instagram.com/erwinszeto/
Referans Bahcesehir which is being constructed, in the center of the most regional destination as Bahçeşehir, shines out with its central location and unique landscape including social facilities such as a fitness center, sauna, sports facilities, children’s playground and recreational areas.
Not only drawing attention for immediate surroundings including commercial centers and private schools but also providing the easily accessible location with closeness to Tem Highway and connection roads, ongoing construction of 3rd Bridge Connection roads and Metro Projects
Bahcesehir is a rising value in the great city of Istanbul… Located at a new transportation junction in the northwest of the City… Located at such a spot that the access roads for the 3rd bridge and for the 3rd Airport will reach the region in 2016. The Marmaray and the Subway will extend all the way to Referans Bahcesehir respectively in 2018 and 2019.
465 flats and 34 stores are designed with an outstanding approach and arranged with a unique perspective offering the following options: 1 plus 1, 2 plus 1, 3 plus 1, 3.5 plus 1, 4 plus 1, and 4.5 plus 1. It is planned so as to safeguard you and your loved ones based upon a modern, technological safety approach. As you experience the joy and luxury here, you will be content and feet at ease.
It is worth seeing both inside and outside with heart-warming cafes, tasty restaurants and elegant stores… And it is ready to offer a vivacious social life with a warm and cozy space design.
A folding swimming pool and indoor swimming pools, playgrounds, Turkish bath, sauna… It has them all. Everything you need for your well-being and for having a pleasant time will be at your service. You simply need to align the rhythm of life with the rhythm of Referans Bahcesehir.
https://listingturkey.com/property/referans-bahcesehir/
The SVN® organization shares a portion of their new weekly listings via their SVN Live® Weekly Property Broadcast. Visit https://svn.com/svn-live/ if you would like to attend our weekly call, which we open up to the brokerage community.
Presentation to Windust Meadows HOA Board of Directors June 4, 2024: Focus o...Joseph Lewis Aguirre
Presentation to Windust Meadows HOA Board of Directors June 4, 2024: Focus on Public Safety as Job #1, Engagement, Wealth of HOA, Branding, Communication, Culture, Civic Responsibility
Urbanrise Paradise on Earth - Unveiling Unprecedented Luxury in Exquisite Vil...JagadishKR1
Immerse yourself in the epitome of luxury living at Urbanrise Paradise on Earth. These opulent 4 BHK villas, nestled off the prestigious Kanakapura Road in Bangalore, redefine elegance and sophistication. With meticulous craftsmanship, breathtaking design, and unparalleled amenities, Urbanrise Paradise on Earth offers a sanctuary where every moment is infused with luxury and serenity. Experience a life of grandeur and indulgence at this exclusive residential enclave.
Scanning tenants in NYC requires a thorough and compliant approach to ensure you find reliable renters. For a positive rental experience, consider hiring a property management service. Belgium Management LLC specializes in NYC rental property management and tenant relationship management. We prioritize tenant satisfaction, making us a trusted name in New York property management. Our dedicated team ensures tenants feel valued and supported throughout their lease.
Green Homes, Islamabad Presentation .pdfticktoktips
Green Homes Islamabad offers beautifully designed 5, 8, and 10 Marla homes near the airport and motorway. Enjoy luxury, convenience, and high rental returns in a prime location.
BricknBolt Understanding Load-Bearing Walls and Their Structural Support in H...BrickAndBolt
Load-bearing walls are the backbone of any home construction, providing crucial structural support that carries the weight of the house above. For companies like Brick and Bolt Mysore and Bricknbolt Faridabad, understanding and properly implementing these elements are key to constructing safe and durable buildings.
One FNG by Group 108 Sector 142 Noida Construction UpdateOne FNG
One FNG by Group 108 is launching a new commercial project in Sector 142 Noida. Office space and high street retail shops on the FNG and Noida Expressway. For more information visit the website https://www.onefng.com/
Torun Center Residences Istanbul - Listing TurkeyListing Turkey
THERE IS LIFE IN ITS CENTER!
The most energetic spot of the city that will add utterly different pleasures to your life, with a park that will make Istanbul breathe, delighting indoor and outdoor bistros, cafes, restaurants, the brand-new Food Hall concept, where dozens of unique tastes are served together, market area, cinema, theater, fitness club, SPA and event venue...
All the pleasures that will enrich your lives are awaiting you on the most beautiful side of the city, at Torun Center Residences. In Mecidiyeköy, where the heart of Istanbul beats, business, life and entertainment opportunities are located at the exact center, at Torun Center, the most beautiful side of the city.
Penthouse apartments and different styles of flats from 1 + 1 to 4 + 1, from 100 to 425 square meters in a 42-story residence tower, have been designed for those who want to live in the center of magnificence. Torun Center is the redefinition of a better life with specially landscaped floor gardens, apartment options with private balconies, and automatic glass systems equipped with Trickle Ventilation that offers clean air comfort.
Business and life in the same place
Excellent service
Torun Center has many delightful details, from a swimming pool to sunbathing and resting terrace. With 24/7 concierge services, 24/7 security, valet, technical service, closed-circuit camera system (CCTV), central heating and cooling system, it makes your life easier.
Delightful details
The two-story Torun Center Lounge, with its indoor and outdoor seating areas, children's playroom, private dining and TV lounge, promises unforgettable memories to you and your loved ones with its unique Istanbul view.
Neighboring to the most pleasant square of Istanbul
A few steps from the Torun Center Residences, you can reach the city's most modern city square and open the doors of a quality city life. Torun Center Residences brings together on the same project the long-awaited city life for Istanbul and gourmet restaurants, cafes, gym and SPA, and state-of-the-art cinema and Artı Stage, hosting the most famous plays of the season.
Located at the intersection of alternative public transportation options such as the metro and Metrobus, Torun Center comes to the fore as the most accessible office for both sides of Istanbul. With a central location and rich transportation lines, Torun Center offices make life easier for employees and increase productivity.
Keep Your Home Naturally Cool and Warm Out Change in Seasons
Vinra Construction is a private limited company registered under the ROC. The management has an experience of over 15 years of understanding the needs and delivering apt solutions to the end users We are providing turnkey solutions in construction fields. like Construction, Interior Designing Facility Management, Plantation Management, etc..
Vinra Construction Tech Enabled Company for Eco-Friendly Home Construction
Contact With Vinra for a Greener Future >>> Call us @ 888 4898 765
Omaxe Sports City Dwarka stands out as a premier residential and recreational destination, offering a blend of luxury and sports-centric living. Located in the thriving area of Dwarka, this project by Omaxe Limited is designed to cater to modern lifestyle needs while promoting a healthy, active living environment.
Rixos Tersane Istanbul Residences Brochure_May2024_ENG.pdfListing Turkey
Tersane Suites Residences is a luxurious real estate project located in the heart of Istanbul, next to the beautiful Golden Horn. This unique development offers hotel concept residences with Rixos management, making it the perfect choice for both homeowners and investors.
The Tersane Suites Residences offers a wide range of options, from studio apartments to spacious four-bedroom units, all designed to the highest standard. The suites are finished with high-quality materials and feature modern, open-plan living spaces, fully-equipped kitchens, and large balconies with stunning views of the city and sea.
One of the standout features of Tersane Suites Residences is the Rixos management, which provides a truly exclusive and upscale living experience. Residents will have access to a range of luxury amenities, including a fitness center, spa, and indoor and outdoor swimming pools. Plus, the on-site restaurants and cafes provide a taste of the local and international cuisine.
The Tersane Suites Residences also offers a great opportunity for investors, as it provides a rental guarantee program. This means that investors can enjoy a steady income stream, with the peace of mind that their property is being managed by a reputable and experienced team.
The location of Tersane Suites Residences is also unbeatable, with easy access to the city’s main transportation links and within close proximity to the historic center, making it the perfect base for exploring all that Istanbul has to offer.
2. Definition
• A REIT is a type of security that invests in real estate
through property or mortgages and often trades on major
exchanges like a stock. REITs provide investors with an
extremely liquid stake in real estate.
3. What is REIT & How it works
• REIT is an investment vehicle for real estate that is comparable to a mutual
fund, allowing both small and large investors to acquire ownership in real
estate ventures, own and in some cases operate commercial properties
such as apartment complexes, hospitals, office buildings, timber land,
warehouses, hotels and shopping malls.
• Real Estate Investment Trust, owns or finances income-producing real
estate. Modeled after mutual funds, REITs provide investors of all types
regular income streams, diversification and long-term capital appreciation.
• REITs typically pay out all of their taxable income as dividends to
shareholders. In turn, shareholders pay the income taxes on those
dividends.
4. What is REIT & How it works
• REITs allow anyone to invest in portfolios of large-scale properties the
same way they invest in other industries – through the purchase of
stock.
• In the same way shareholders benefit by owning stocks in other
corporations, the stockholders of a REIT earn a share of the income
produced through real estate investment – without actually having to
go out and buy or finance property.
• Like mutual funds, REITs will pool in money from investors and issue
units in exchange.
5. What is REIT & How it works
• As of August 2014, India approved creation of real estate investment
trusts in the country. Indian REITs (country specific/generic version I-
REITs) will help individual investors enjoy the benefits of owning an
interest in the securitized real estate market.
• The greatest benefit will be that of fast and easy liquidation of
investments in the real estate market unlike the traditional way of
disposing of real estate. The government and Securities and Exchange
Board of India through various notifications is in the process of
making it easier to invest in real estate in India directly and indirectly
through foreign direct investment, through listed real estate
companies and mutual funds.
6. GUIDELINES & FORMATION:
• The REIT will have to first get registered and raise funds through an initial public
offer or IPO. Units of REITs will have to be compulsorily listed on exchanges and
will be traded like securities. Most of the money so collected will be invested in
commercial properties which are completed and are generate income.
• The guidelines, approved by its Sebi board, have kept the minimum requirement
for asset sizes permitted to be listed in India at Rs 500 crore. The minimum issue
size of the initial public offer shouldn't be less than Rs 250 crore.
• Like stocks, investors will be able to buy units of REITs from both primary and
secondary markets. While investing in an IPO, the minimum investment amount
will be Rs 2 lakh, while on exchange the minimum lot size will be Rs 1 lakh.
• An investor can earn two types of income from REITs. One through capital gains
when he sells the units of REITs on exchanges and the other through dividend
income.
7. Some important points
Low Entry Barrier
• MINIMUM SUBSCRIPTION: Rs 2 lakh (primary market)
• TRADING LOT SIZE: Rs 1 lakh (secondary market)
Regular Income
• Dividend income: At least 90% of the distributable cash flow must be distributed and at
least twice a year.
Transparency
• REIT, through a valuer, will undertake full valuation on a yearly basis and update the
same on a half-yearly basis and declare NAV within 15 days from the date of such
valuation/updation.
Diversification
• REITs will have to invest in at least two projects. Not more than 60% value of assets will
be in one project.
8. Some important points
Low risk
• Not less than 80% of the assets should be invested in completed and
revenue-generating properties. The rest 20% can be invested in under-
construction properties, mortgage-backed securities, listed/unlisted debt
of companies in the real estate sector, equity shares of listed companies
which derive not less than 75% of their operating income from real estate
activity, G-securities and money market instruments and cash equivalents.
• Sponsor, trustee and manager cannot be an associate. This will ensure
there is no conflict of interest.
• Sponsors must hold 25% of the units for first three years and 15%
thereafter to ensure their commitment.
9.
10. DETAILED ANALYSIS
While anticipating handsome returns one must be cautious of the
recent performance of the commercial real estate market in India and
the associated stagnancy in asset pricing growth across most projects.
Investors should also keep in mind other costs such as tax outflow,
stamp duty and other conversion charges before investing in these
instruments. Here is the analysis , how RIETs will stack up on returns,
safety, liquidity and taxation.
11. RETURNS
• The investment portfolio specified for REITs shows that you will receive your returns from
the REIT in two forms. One, you will receive regular dividends paid out from the rents or
capital gains that the REIT makes on its properties. Two, you could make a capital gain if
the price of your listed REIT unit appreciates on the exchanges. Of course, when the REIT's
long tenure ends, you will also realize the gains that the holdings generate.
• Now, the first aspect dividend share mainly a function of the rental yields (rent as a
function of price) on the properties that the REIT owns. Rental yields for commercial
property move up or down depending on factors such as the supply, absorption and the
fortunes of user sectors such as IT/BPO, financial services and retail.
• Presently, rental yields on good commercial properties in India average 9 to 11 per cent.
But these yields vary widely based on location and the quality of the property. Assuming
the REIT charges a fee of 2-3 per cent for managing these assets, the net returns
distributable to investors by way of dividends will therefore be in the range of 6 to 9 per
cent, before taxes. Yes, REITs can bump up those returns by buying and selling property
and making capital gains. But this may not be easy in a portfolio made up mainly of
commercial properties. The commercial property market in India lacks liquidity; which is
why large developers such as DLF, Unitech, Phoenix Mills and so on have found it difficult
to sell commercial assets to reduce debt on their balance sheets. The prolonged downturn
in the commercial market since 2008 has only aggravated this problem. Therefore, desi
REITs, if they find high rent yielding properties, are more likely to hang on to them, rather
than try and generate capital gains by 'trading' on prime assets.`
12. RETURNS
• As to capital gains to the investor from the listed units, the lack of valuation benchmarks for
domestic property makes the situation complicated. Yes, REITs are supposed to get their assets
valued by a third party even six months. But given that property prices vary so widely between
different localities and swing sharply between one deal and the next, most property market
experts admit that the calculated NAV for a REIT would be only a guesstimate, not a watertight
measure like the NAV of a mutual fund. Given that these NAVs would be disseminated only once
in six months, the daily prices of REITs may deviate quite sharply from their book value.
• These facts show that it will not be very easy for Indian REITs to earn double digit returns. REIT
managers who are particularly savvy in picking up prime properties at beaten down valuations
may manage it. But high valuations at entry or poor selection of property can very easily decimate
returns too.
• On this count, Indian REITs will have a far harder time attracting investors than their global
counterparts. REITs in developed markets appear quite attractive to investors even with a 6-7 per
cent income, because interest rates in those markets hover at 2-3 per cent. But Indian REITs will
be attractive to investors only if they manage dividend income that is higher than bank deposits
(9 per cent), small savings schemes (8-8.5 per cent) and debt mutual funds (historically 8-8.5 per
cent). However, investors must keep in mind that REITs dividends are not comparable to the
others above because there is a separate capital appreciation component too. This means that
the rental income will also likely be a percentage of the appreciating capital value in a good REIT,
as rents escalate. In fact, REITs could actually turn out to be the best way to generate inflation
adjusted regular returns, which is a rarity in India.
13. SAFETY
• It is comforting to know that REITs in India will be regulated by SEBI, one of the more proactive Indian
regulators. This is especially so because the sponsors who will come forward to manage REITs are not likely
to emerge from the traditional Indian mutual fund or insurance companies, but from the corporate and real
estate sectors. One would hesitate to accord the Indian real estate sector high marks on corporate
governance. For one, it is well - known that most real estate transactions are subject to a grey market
component due to the incidence of stamp duty. And most property deals, unlike those for stocks and bonds,
take place behind a veil of opacity. Two, given the nexus between real estate and politics, and the multiple
approvals needed to launch projects, the sector is riddled with corruption too. These are precisely the
reasons why many Indian mutual fund houses are wary of launching REITs, though SEBI has thrown open the
asset class.
• But having said this, SEBI has put in place three safeguards in its new REIT regulations to protect your
interests. One, all REITs are required to register with SEBI; thus allowing it to weed out non-serious players or
those with a doubtful governance record at the very outset. Two, the investment restrictions on REITs (80
per cent in completed property, 90 per cent dividend payout, investments in at least 2 projects, approval for
related party deals and so on), put in place a basic governance structure to prevent mis-utilisation of funds.
Three, REITs are required to start off with a minimum asset size of R500 crore which is already invested into
identified property assets. What is more, the sponsors are required have their own 'skin in the game' by
investing 25 per cent of the initial corpus. Disclosure requirements such as the filing of a prospectus,
financial statements and half-yearly NAV calculations by an independent valuer, usher in some transparency
into the vehicle.
• Given the nature of the market itself, whether these regulations deliver good governance in practice remains
to be seen. Until then, investors will have to exercise considerable due diligence on the sponsors of the
upcoming REITs.
14. SAFETY
• The regulatory aspect apart, how safe will REITs be in terms of the volatility of returns?
Because they will own a diversified portfolio of properties, they may turn out to be safer
than direct bets on land or property. After all, these properties are also to be selected and
regularly monitored by expert professionals. The requirement that REITs pay out regular
dividends from completed, income-generating properties also reduces risks to investors as
this ensures a minimum return.
• But this is not to say that REITs will not suffer from any NAV volatility. Though most Indian
investors seem to believe that property prices head only one way (Up!), that's not really
true. In fact, the commercial sector (malls, office space, multiplexes), which REITs will focus
on, has been far more sensitive to the economic downturn than the residential sector. A
study by FICCI jointly with real estate consulting firm Knight Frank, shows that while
residential property prices in Chennai, Mumbai and NCR have appreciated by anywhere
between 38 and 55 per cent from early 2009, office rents in the same markets are today
below 2009 levels. Industry statistics also show that commercial property prices, which were
at record highs in 2008, tanked sharply thereafter and even today languish 20-25 per cent
lower than levels five years ago. The valuations of listed REITs, obviously, will reflect such
swings in their portfolio value.
15. LIQUIDITY
• With SEBI mandating all Indian REITs to be listed, investors can be assured of anytime exit by selling
their units. The availability of six-monthly NAVs will also ensure a reasonable basis for price discovery.
Therefore, REITs may offer far better liquidity than direct investments in property or plots. We all know
how difficult it is to gauge the fair price, leave alone actually buy or sell property in India. But you
should bear in mind that REITs, despite listing, may be far less liquid than stocks or mutual funds,
because of the very nature of their underlying investments.
• In the last five years, the supply of commercial space in key cities has far outpaced demand, leading to
significant unsold 'inventory' of office and mall space and vacancies of 18-20 per cent. While this will
create opportunities for newly launched REITs to acquire assets at attractive prices, exit from these
assets is likely to prove difficult. The illiquidity in underlying assets can cause distortions in the traded
price of REITs in the secondary market.
• Further, though REITs are to be listed, the minimum lot for trading is at R1 lakh; the high outlay may
restrict their trading volumes on the bourses. Given the close end nature of the vehicle, REITS may also
trade at sizeable discounts to the NAV, based on market conditions. For instance, Singapore listed REITs
(which include REITs sponsored by firms such as Ascendas and Indiabulls who are active in India)
traded at discounts if anywhere between 25-30 per cent to their NAVs two years ago; with the markets
recovering a few have now moved into a premium.
16. TAXATION
• The evaluation of any investment option cannot be complete without
factoring in what you give away to the taxman. Going by clarifications in the
recent budget, Indian REITs are likely to enjoy pass-through status on their
taxation. Just like mutual funds, the REITs may therefore be required to pay
no tax on their capital gains or rents earned from property. But there are
other tax aspects to be unravelled before REITs can become as tax-efficient
as say, equity funds. For one, while the REIT itself pays no tax, the entities or
firms from which it collects rent will have to shell out taxes. Two, the world
over, investors do pay taxes on the dividends as well as capital gains they
make on their REIT investments.
• That poses yet another challenge for the upcoming Indian REITs. Not only do
they have to navigate the tricky commercial property market and compete
with other ultra-safe investments on returns, they also have to deliver a
good post-tax return to the investor, compared to long term debt funds, tax-
free bonds and the public provident fund.
17. BARRIERS ON THE WAY
• Still, some barriers remain for REITs. One is dividend distribution taxes (DDT)
and stamp duty on the transfer of properties. “The lack of clarity on DDT has
acted as a deterrent for the real estate players and the private equity players
to launch REITs in the country.
• There should be no unrealistic expectations from REITs as they are structured
to suit risk averse investors. "These are meant for risk averse investors who
want regular income without taking too much risk.
• Also, real estate markets have done poorly because of oversupply and lack of
demand due to high prices. The rental yields have not been very attractive
either. "Yields on commercial assets (which are essentially pre-leased) do not
exceed 9-10%. Hence, what a business trust can offer to the investor can be at
best 7-8% a year after adjusting for expenses of managing the fund
NOW INVESTORS EYES ARE ON THE COMING BUDGET.
18. FRIENDS, I HOPE THIS PPT WAS USEFUL TO YOU AND YOU HAVE
GAINED SOME KNOWLEDGE OF REIT’S.
IF STILL YOU NEED SOME CONSULTANCY FREE OF COST AND FOR
FURTHER CONNECTIVITY YOU CAN CONTACT ME AT MY EMAIL I’d
aguptacompany@gmail.com OR MY CONTACT NO. 8437733375.